FCA

Fiat Group sells legendary Magneti Marelli

Magneti Marelli, founded in 1919 and specialized initially in the production of magnets for the automotive and aeronautics industry, which later evolved into one of the most prestigious suppliers of electronic equipment for the automotive industry. Rallies and motorcycling, was sold to the Japanese company Calsonic Kansei. The deal involved a payment to Fiat Chrysler Automobiles (FCA) of 5.8 billion euros, which allowed the Italian-American group to distribute about 2 billion euros to shareholders at € 1.30 per share.
It was not an easy decision to separate Fiat from Magneti Marelli together since its foundation, but the fact that Magneti Marelli belonged to FCA ended up limiting the access of the different brands of the group to the best solutions available in the market for its vehicles - a problem, especially at a time when electric vehicles are approaching and connectivity, launching a new series of challenges.
The sale of Magneti Marelli is recognition of the company's market value, which in turn allows us to strengthen our financial situation and distribute dividends to our shareholders, while focusing on new vehicles, "said Mike Manley .
Calsonic Kansei is itself a merger between an air conditioning company, Calsonic, and Kansei, a specialist in automotive instrumentation. Despite being considered Japanese, Calsonic Kansei belongs to the American private fund Kolhberg Kravis Roberts, which acquired the 41.7% held by Nissan in 2016, and started to control the whole from the beginning of 2017. With 60 factories throughout the world, Calsonic Kansei almost doubles its turnover with the purchase of Magneti Marelli. Autonews